Toll Processing

What is “Toll Processing?”

Toll processing can be defined as performing a service on a customer’s product for a fee. In other words, the steel mill, end-user, trading partner, etc. makes or purchases the material and then ships the product to our facility for processing. In this case, we would either slit, cut to length or blank the customers material to the exact customer specifications and then ship the material to the proper destination per their direction. The rates are typically in price per pound or per C.W.T (hundred weight).

What are the Advantages of “Toll Processing?”

There are many advantages and benefits of having products processed by a toll processing company. In many cases, the required process may be new to the company or they lack that particular capacity in their manufacturing facility. For example, company X may have produced product A for years for a specific market, but find that now they have a new market if they can secure material with a flatter profile or a part that requires a tighter tolerance, etc. A toll processing company can give them the capacity or processing method they require to address this new market in a timely manner.

It is safe to say the advantages for outside processing are as varied as the applications, but listed below are some of the most common:

• No capital investment or depreciation.
• No extended lead times for equipment delivery and installations.
• No detailed engineering requirements.
• No floor space required.
• No maintenance requirement.
• No spare parts requirement.
• No additional personnel required.
• No new permits required for dust house discharge.
• Predictable costs.
• Quick turn around times.
• Working with a team of professionals who will strive to earn and keep you business.

In addition to these advantages, toll processing companies can be very good consultants. Typically a “Toll Processor” has run a wide variety of materials under many conditions. This experience has provided a wealth of information concerning the many twists and turns associated with processing various materials. This information can prove very valuable in helping you to decide the best method in reaching your goals.